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Republic Industries Acquires Dealerships In California And Florida

12 February 1999

Republic Industries Acquires Dealerships In California And Florida With $625 Million In Annualized Revenue

    FORT LAUDERDALE, Fla., Feb. 12 -- Republic Industries, Inc.
today announced that it has signed definitive agreements to
acquire five dealerships in a series of separate transactions that will
contribute approximately $625 million of annualized revenue to Republic's
operations.  The aggregate purchase price of approximately $155 million will
be paid in cash.  Each transaction is subject to customary closing conditions,
including manufacturer and government approval.  The dealerships are located
in California and Florida.
    In southern California, Republic is acquiring the Joe MacPherson Ford,
Chevrolet, Infiniti and Mazda dealerships, as well as Lew Webb's Lexus of
Cerritos.
    The MacPherson Ford, Infiniti and Mazda dealerships are co-located in the
Tustin Auto Mall.  MacPherson Chevrolet is located in the Irvine Auto Mall.
    Lexus of Cerritos is being acquired under an option granted as part of
Republic's purchase of the Webb Automotive Group last year.  The dealership is
located in the Cerritos AutoMall, one of the largest, highest volume auto
sales locations in the U.S.  The Lexus franchise complements Republic's other
dealerships in the AutoMall, Toyota of Cerritos and Buick Mart.
    Republic currently owns 50 franchises in southern California and four
AutoNation USA used vehicle megastores (Irvine, Long Beach, Oxnard and Rancho
Cucamonga).  A fifth AutoNation USA is scheduled to open in the South Bay area
of Los Angeles in April.
    In northern California, Republic will acquire Smythe European, Inc. of San
Jose.  Smythe European operates Mercedes-Benz and Volvo dealerships located
along the Stevens Creek Auto Row in San Jose, as well as several off-site
Mercedes-Benz service centers.  The Mercedes-Benz franchise ranks among the
top 10 Mercedes dealerships in the United States in retail volume.  The Volvo
franchise ranks among the top five of all Volvo dealerships in the nation.
    Smythe European increases Republic's presence in northern California,
where it recently signed a definitive agreement to acquire the Tasha
Automotive Group, which operates Dodge, Chrysler-Plymouth, Jeep-Eagle, Honda,
Toyota, Nissan, Acura, Hyundai and Isuzu dealerships (the acquisition of the
Toyota franchise is subject to compliance with a framework agreement between
Republic and Toyota Motor Sales U.S.A.).  The Tasha dealerships are located in
Roseville, Fremont, Hayward and Santa Clara.  Republic also owns Anderson
Chevrolet locations in Menlo Park and Los Gatos, Anderson Chevrolet/Chrysler-
Plymouth in Cupertino, Anderson Honda-Isuzu in Palo Alto and Anderson
Cadillac-Oldsmobile in Menlo Park.
    In addition, Republic will open an AutoNation USA megastore in the East
Bay community of Dublin later this month, the Company's 44th location.
    In northeastern Florida, Republic is acquiring King's Crown Ford of
Jacksonville.  Other Republic dealerships in the Jacksonville area include
Mike Shad Ford, Shad Chrysler-Plymouth Jeep Eagle, Sunrise Nissan of Orange
Park and Sunrise Nissan of Jacksonville.  Republic also owns an AutoNation USA
megastore in Jacksonville.
    Republic is also acquiring Contemporary Cars, located in the Orlando
suburb of Maitland.  Contemporary Cars owns and operates the only Mercedes-
Benz and Porsche dealerships in the Orlando area.
    Other Republic holdings in Orlando include The Courtesy Auto Group
(Pontiac/GMC, Buick, Acura, Suzuki, Izuzu and Kia franchises) and First Team
Auto Group (Ford, Chevrolet, Acura, Oldsmobile, Mitsubishi, Cadillac, Saab,
Chrysler-Plymouth, Jeep Eagle and Infiniti dealerships), as well as an
AutoNation USA located in Sanford.
    "These acquisitions strengthen us in the key markets of Los Angeles, San
Francisco, Orlando and Jacksonville," said Steven R. Berrard, Co-Chief
Executive Officer of Republic Industries.  "The dealerships are well-managed
companies that have built a great presence in their markets.  We are delighted
to have them join the Republic family of new vehicle dealerships."
    Republic Industries, Inc. is the world's largest automotive retailer.  The
Company owns the nation's largest group of automotive dealerships, with nearly
400 franchises in 20 states and the AutoNation USA used vehicle megastore
chain, with 44 locations in 13 states.  Republic also owns and operates
National Car Rental Systems, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA.
Additionally, the Company owns 63.9 percent of Republic Services, Inc.
, one of the leading providers of non-hazardous waste collection
and disposal services in the U.S.